Rent Control Fight Clashes With Housing Crunch In California

SACRAMENTO (CBS13) — Downtown Sacramento could be in for a fight over rent control if a proposed initiative makes it on the November ballot.

The measure would repeal a state law that currently puts strict limits on the type of rent control that’s allowed.

The largest statewide rental housing trade association in the country is sounding the alarm about the proposal.

“Rent control would put a halt on new construction,” said Debra Carlton with the California Apartment Association. “It may help an individual at that moment in time, but it will stop construction going forward, and the future of California is in jeopardy.”

The campaign to gather signatures is aimed at repealing the 1995 Costa-Hawkins Rental Housing Act, a law that forbids rent control on housing built after 1995, including single-family homes and condos in duplexes.

Currently, a city can impose rent control if it wants, but it must be done within those restrictions.

Carlton says without those restrictions, new construction would dry up.

“Builders are already telling us if rent control comes to California, we will move to another state to build housing,” she said.

But backers say they are quickly gaining signatures to get the measure on the ballot. They’re hoping to put a cap on skyrocketing rent costs throughout the state amid constrained supply.

They say they’re confident they’ll get the signatures they need before June, so the measure qualifies for the November ballot.

“Nothing could prevent the California electorate from simultaneously demanding low electricity prices and no new generating plants while using ever increasing amounts of electricity.” Professor Thomas Sowell

“Nothing could prevent the California electorate from simultaneously complaining about high rents while voting for more immigration despite a fixed supply of land.”